Indian state-owned freight and passenger transporter Indian Railways is likely to import steel rails during the financial year 2018-19, for the second consecutive year, in view of the shortfall in supplies from domestic steel producers, Railway Ministry sources said on Wednesday, April 18.
The ministry sources said that state-owned steelmaker Steel Authority of India Limited (SAIL) which was to supply 950,000 mt of steel rails during FY 2017-18 supplied only 874,000 mt during the year.
During the current fiscal year, Indian Railways is seeking 1.5 million mt of steel rails from the government-owned steel company but SAIL is expected to meet only 1.3 million mt, leaving a demand gap for the transporter, the sources said.
Last year, for the first time, Indian Railways was forced to resort to imports to meet its demand for steel rails and floated a global tender to procure 717,000 mt from international suppliers and, considering the prospect for a shortfall in supplies from domestic producers, Indian Railways could be compelled to seek a global supplier for the second consecutive year, the sources added.